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New bonds

At the meeting of the Sejm on 28 November 2014, deputies adopted a new Law on bonds, as  amended by the amendments made by the Public Finance Committee, which has also proposed the extension of vacatio legis of the Act from January 1, 2015 year to July 1, 2015 year.

This is the first of more than 10 years the amendment of the legislation, which according to the Ministry of Finance will adjust their national regulations to current conditions in developed financial markets. The Ministry of Finance in support of the project also pointed out that the amendment is intended to support the development of long-term market for securities issued by the company.

Lawmakers are essentially an amendment to create the favorable conditions so that the bond issue could serve as an additional, as compared to bank loans, a source of capital and thus easier for companies that have easier access to additional sources of financing for development.

Therefore, extended the scope of the personal bond issuers of foreign entities and special purpose vehicles . A bill was also introduced the institution of the meeting of bondholders, as a quasi – authority, representing the bondholders of the series against the issuer.

It also extended the scope of the instruments available to issuers. As for the possibility of issuing perpetual bonds and subordinated bonds .

The purpose of the changes is to be activation of entrepreneurs by providing clearer and more certain rules governing the issuance of bonds, and thus the revival of the market by removing existing barriers imposed by law.

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